Virtual Liquidity Pools (VLPs) allow users to deposit supported tokens into the Mynth ecosystem and earn rewards over time. These deposits are used to provide liquidity for fulfilling intents across networks. VLPs are designed to give Mynth a source of capital while offering depositors a simple way to participate and earn rewards.

When a user deposits tokens into a VLP, the protocol issues a position represented as an NFT. Each NFT tracks the specific details of that deposit, including the token type, amount, timestamp, and reward history. These positions are non-fungible and managed independently.

Rewards are calculated and distributed every five days. Rather than being paid out separately, earned rewards are automatically added to the user's position. This compounds the deposit and increases the size of future rewards. Positions remain active and continue earning until a withdrawal is requested.

To withdraw, users must initiate a request. Once submitted, the position enters a five-day cooldown period. During this time, the deposit is locked. After the cooldown period ends, the funds are returned back to the user.